Manang Marsyangdi Hydropower Company Pvt. Ltd. (MMHCPL) announced the financial closure and commencement of construction for its 135 MW Manang Marsyangdi Hydropower Project (MMHP).
The milestone was achieved with a loan agreement with China’s EXIM Bank, signed on October 22, 2024. Under the agreement, EXIM Bank will provide CNY 1.24 billion (USD 175.25 million), with the remaining funds secured from other sources. The estimated cost of the project is USD 323 million.
The project has been developed in partnership with Nepal’s Butwal Power Company Limited and Chinese investors SCIG International Ltd., Xingcheng International Investment Co. Ltd., and QYEC International Co. Ltd.
MMHP will be constructed in Chame and Nasong Rural Municipalities in the Manang District. The hydropower project is expected to generate 766 GWh annually, utilising a 430-metre head with a 6-kilometre headrace tunnel.
The project will be executed under an EPC contract by Sinohydro Bureau 7 Co. Ltd., China, with construction expected to conclude within 42 months. Northwest Engineering, China, will oversee the project.
MMHP is part of a larger cascade development, with two other hydropower projects planned in the region, the 139.2 MW Lower Manang Marsyangdi and the 327 MW Upper Marsyangdi-2, totaling a combined capacity of 601 MW at an estimated cost of USD 1.2 billion.
Despite hurdles such as hedging uncertainties, land acquisition issues, and the impact of the COVID-19 pandemic and 2021 floods, MMHCPL has moved forward with construction. The company expressed appreciation for the support of government bodies, investors, and stakeholders and anticipates ongoing cooperation in the future.
